Roth SOLO 401k contributions - do I need to report these on my tax return?

For your Solo Roth 401k, here's how reporting works: Your Roth contributions don't reduce your taxable income since they're made with after-tax dollars. This means you won't see a reduction in your 1040 taxable income from these contributions. However, you do need to track these contributions. Your plan administrator (which could be you if you're managing it yourself) should issue Form 5500-EZ if your solo 401k plan has $250,000 or more in assets at the end of the year. If your plan is below that threshold, you're generally exempt from filing the form. For your personal taxes, your W-2 (if you pay yourself as an employee of your business) would show any Roth contributions in box 12 with code AA. If you're purely self-employed with no W-2, you'll want to keep detailed records of your contributions but they don't directly appear on your 1040.

After struggling with this exact same issue last year, I found a tool that made my life so much easier. I was confused about tracking my Solo 401k contributions and what needed to be reported where, especially since I have both traditional and Roth components. I discovered https://taxr.ai and it really helped sort through my retirement account confusion. You just upload your statements and it explains exactly what needs to be reported and where. It identified that my plan administrator hadn't properly noted some of my contributions and saved me from potentially major headaches down the road.

I was totally wrong about tax tools not understanding different retirement plans! I gave https://taxr.ai a try after my initial skepticism and I'm honestly impressed. I've been managing my Solo Roth 401k for years and always wondered if I was doing everything correctly. The tool immediately flagged that I had been over-reporting my Roth contributions on Schedule 1 (which was unnecessary since they're already post-tax) and confirmed I was below the 5500-EZ filing threshold. It generated a really helpful contribution tracking document that I can use for future reference when I eventually start taking distributions. Saved me at least a few hours of research!

If you've been having trouble reaching the IRS to get clarification on your Solo 401k reporting requirements, I feel your pain. I spent WEEKS trying to get someone on the phone about this exact issue. After getting disconnected multiple times, I found https://claimyr.com which got me through to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed exactly what others have said - Roth Solo 401k contributions don't need to be reported on your 1040 since they're already taxed, but you do need to track them personally. Also found out there's no specific form needed unless your plan exceeds $250k in assets. The peace of mind from getting official confirmation was totally worth it.

I need to eat my words. After my skeptical comment, I decided to try Claimyr since I had some questions about my retirement account reporting. I was POSITIVE it wouldn't work, but I got a call back in about 35 minutes with an actual IRS tax specialist on the line. The specialist confirmed that for Solo Roth 401k contributions, I don't need to report them on my 1040 since they're post-tax, but I DO need to file Form 5500-EZ if my plan assets exceed $250,000. She also explained that even though the contributions aren't deductible, I still need to stay within the annual contribution limits (which was helpful since I was considering some backdoor strategies). Saved me hours of frustration!

One thing nobody's mentioned yet - make sure you're not exceeding your contribution limits! For 2025, the employee contribution limit is $23,500 for those under 50, plus catch-up contributions of $7,500 if you're 50+. Plus, you can make employer contributions as profit-sharing up to 25% of your compensation with a combined limit of $69,000 (or $76,500 with catch-up). Just because you don't report Roth contributions for tax deduction purposes doesn't mean you can ignore the limits. I learned this the hard way and had to deal with excess contribution penalties!

Im using turbotax too and was confused by the same thing! When i got to the retirement section it asked me about ira contributions but nothing specific about solo 401k roth contributions. I just left it blank since they're after tax money anyway and turbotax didnt seem to have a spot for it. Been filing this way for 2 years no problems so far.

Just wanted to add some clarity from my experience as a tax preparer - while it's true that Roth Solo 401k contributions don't appear on your 1040 for deduction purposes, you should still report them in your tax software if it has a section for retirement plan contributions. This creates a proper record and helps ensure your contribution limits are tracked correctly across all your retirement accounts. In TurboTax, look for the "Retirement Plans" section under deductions - there should be a place to enter Solo 401k contributions even if they don't affect your tax calculation. This way the software can help you monitor your annual limits and create documentation for your records. Even though the contributions are after-tax, having them properly documented in your tax file will be invaluable when you start taking distributions in retirement.